Cousins raises 2026 FFO guidance to $2.95–$2.99 per share
Key Facts
Cousins Properties raised its 2026 funds from operations (FFO) guidance to $2.95–$2.99 per share, from $2.92–$2.98 previously, according to its third-quarter earnings filing with the U.S. Securities and Exchange Commission. The company said the increase was driven mainly by leasing activity and fee revenue that exceeded its previous expectations. The filing showed FFO of $123.8 million, or $0.75 per share, in the third quarter, compared with $116.5 million, or $0.69 per share, in the same period of 2025. That puts the guidance revision in the context of quarterly earnings growth, while the increase to the range remains limited. In July, the company had raised its guidance to $2.92–$2.98 per share from $2.90–$2.98.
Cousins attributed the improved guidance to leasing and fee performance, alongside tangible leasing activity during the quarter. It signed leases covering 546,000 square feet of office space, including 220,000 square feet of new leases and expansions, representing 40.3% of total leasing activity. Same-property net operating income on a cash basis also rose 7.4% in the third quarter. Cash net rent per square foot on second-generation leases increased 19.8%. These indicators reflect the sources of improvement the company cited in explaining its higher FFO guidance, without attributing the increase to another factor.
Office portfolio occupancy was 93.0% on September 30, and the CEO said the company remained on track to achieve its 90% year-end occupancy target. The target serves as an operational milestone for the company, while the filing noted that office fundamentals are strong. For the first nine months of 2026, FFO was about $371.3 million, or $2.23 per share, compared with $358.9 million, or $2.13 per share, in the corresponding period of 2025. This comparison provides a picture of cumulative performance through the end of September alongside third-quarter growth. The occupancy target was part of the guidance that management reaffirmed it remained on track to achieve.
In Dallas, Cousins formed a joint venture to acquire a 2.3-acre site at 2401 McKinney in Uptown, in which the company holds a 97.5% stake. Its contribution when the venture was formed was $50.0 million, including $42.2 million for the land and $7.8 million in predevelopment costs. The company did not specify the project’s final cost or full construction plans. The acquisition places the site and predevelopment work among the steps preparing for the project ahead of its planned construction start.
CUZ shares closed at $29.09 on October 29, compared with a close of $28.51 on October 28, according to EL7 data. The company announced a call to discuss its third-quarter results on October 30, 2026, at 10 a.m. Eastern Time. The call gives management an opportunity to discuss results and updated guidance with investors. It is scheduled for the day after the earnings filing, while final details of the Dallas project remain unspecified in the information released by the company.